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Single Parent Families lose out

May 28, 2014

Chris Hayes MP, Federal Member for Fowler, expressed grave concern over the effect the recent budget will have on single parent families in particular.

His concerns are supported by the recent fundings by National Centre for Social and Economic Modelling.

The modelling found that the recent changes to Family tax Benefit payments will result in an effective marginal tax rate of about 80 per cent for single parent families earning over $48,000.

"Single parents on FTB B will lose their payment once the youngest child turns 6. This is a loss of more than $3000 a year.

"They are set to receive a $750 supplement per child between 6 and 12. This supplement does not come close to covering the $3000 loss but it does provide some relief.

"The issue arises when the single parent earns even $1 over the $48,000 threshold. In this case they lose the $750 supplement and are moved to a lowed FTB A level," Mr Hayes said.

A single parent family with 2 children between the age of 6 and 12 will completely lose their FTB B payment (over $3000 per year), will miss out on the $1500 supplement and receive a lower FTB A rate as soon as they earn $1 over $48,000. They will be approximately $4500 per year worse off.

"Single parent families who are already struggling to make ends meet have been asked to carry the heaviest burden of the Federal Government’s unfair budget," Mr Hayes added.